OPINION> Commentary
Transparency key to budget system reform
By Qin Xiaoying (China Daily)
Updated: 2009-02-10 07:49

For many years in the past, the public had been in the dark about government budget, knowing little about how it was laid out and how the money was spent. At the annual National People's Congress (NPC), the country's top legislature, part of whose work is to review and vote the central budget for the next fiscal year, and at People's Congress gatherings held by local governments, even deputies have great difficulty in understanding the lengthy and technically-worded budgetary report within such a short period.

However, this has not stopped information-hungry people from taking an increasing interest in the financial ways of the central and local governments. With the robust development of various communication means in the country, a wide range of issues relating to the country's budgets are now openly debated by the public. The issues range from government spending on education to whether the country's disaster relief funds are put in the right place and effectively used, to how much of the country's $586 billion stimulus package aimed at economic revival is to be spent on infrastructure construction and to whether expenditures by central and local governments are reasonable.

This is an unequivocal indication of Chinese people's increasing awareness as taxpayers and their increasing concerns over the distribution of national wealth. It also best demonstrates Chinese people's growing desire to enjoy larger access to more government information and their rights to carry out necessary supervision in the form of a civic society.

There is no doubt that the ever-growing interest and concern among the public over government budgetary information are linked to the ushering in of the country's reforms. A more open and transparent budgetary system has become a focal point of attention for the whole society.

A regulation on openness of government information was promulgated by the State Council, the cabinet, as early as two years ago and took effect last May. The document explicitly states that governments at various levels should voluntarily make public their budgetary reports and final accounts. This indicates the Chinese government has been well aware that it is its most basic responsibility and obligation to make public the financial budget in a taxpaying era.

In recent years, public finance has become a household term throughout the country. But the realization of such a goal requires extensive public participation and monitoring. An effective and extensive public participation and oversight, however, depend on openness and transparency of the country's financial budgetary system. Certainly, a large number of difficulties and problems are expected to emerge in the country's application of the principle of budgetary openness.

Because of their technical nature as well as the large volume of materials involved, a lot of budgetary reports submitted by governments at various levels to the People's Congresses at the same level are usually difficult to be effectively reviewed or understood within a short period. Also, without special knowledge or certain academic background, most of deputies are usually unable to make an effective and thorough review of the jargon-filled budgetary reports read to them in a dull tone.

To overcome these systematic obstacles, a number of regulations concerning the National People's Congress system should be improved or revised. A short-term and long-term revision and designing program needs to be evolved. It could help the People's Congress system play its pivotal role as the monitor in the review of budgetary reports by governments at different levels.

The great efforts to push for information openness have come along with the country's efforts to set up an open and transparent budgetary system and push forward reforms of democracy and legal reconstruction. Together these fully indicate the country's commitment to deepen its reforms of economic and political systems.

In recent years, the frequently exposed budget problems have pointed to the existing loopholes in the budget drafting and supervision system. The insufficient budget for education, housing and medical care has provoked public controversies. Also, banquets and tours funded with public money as well as the unrestrained use of government vehicles have remained a long-standing issues of public discontent. All these problems should be attributed to the lack of the public voice in the country's budgetary management and supervision. To reverse this , the country should try to reform its budget system and push for an effective mechanism for its future economic and political reform packages.

There is no doubt that viable budgetary reforms will not only reflect the essence of people's democracy, but will also serve as an important part in the push for a corruption-free, clean government. A scientific and highly efficient budgetary arrangement is expected to help the country overcome its current fund shortage in the context of the ongoing global financial crisis. It will also help effective coordination of the interests of various parties and promote a harmonious development of the society.

Last spring, Premier Wen Jiabao promised to push for reforms of the country's financial systems and serve the people better by using taxpayers' money more effectively. One of the challenges of 2009 would be to develop such reforms into a powerful force to boost the development of the country's economy and society.

The author is a researcher with China Foundation for International and Strategic Studies

(China Daily 02/10/2009 page8)